Penalty paid u/s 112(a) of Custom Act was not allowable as deduction

Akshay Khetter pal Vs ACIT (ITAT Delhi)

Conclusion: Penalty u/s 112(a) of the Custom Act was sustainable as penalty was penal in nature and the payment made for discharge of punishment for violation of prohibited acts and/or restriction(s) imposed under the provisions of law, could not be considered as compensatory in natur and not allowable under section 37.

Held: In the instant case, the imposition for penalty u/s 112(a) of the Custom Act was prescribed in order to avoid doing or om

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